Microsoft, Dell big winners of Air Force deal

The Air Force signed a deal with Microsoft Corp. and Dell Inc. for software services that could be worth $500 million over six years, Microsoft officials said today.

Microsoft will provide core server software, maintenance and upgrade support. Dell will supply more than 525,000 Microsoft desktop Windows and Office software licenses.

Microsoft's contract calls for it to streamline previously decentralized software support contracts with the Air Force into a single, enterprisewide support agreement. The agreement is part of the "One Air Force, One Network" initiative, designed to simplify the acquisition process, provide cybersecurity and promptly deliver software updates.

The Dell contract consolidates 38 software license agreements previously signed with the Air Force.

"By consolidating purchases of software and hardware products across its enterprise, the Air Force will be able to enhance IT operation globally through better management, policies and planning," said Microsoft in a statement.